Preparing a budget in retirement


Once you hit retirement, there is a high chance your income will be lower than you‘re used to. Your expenses will change too.  In some cases for the better, but not always.


That means it’s important to budget, so you know whether or not your new income will cover your expenses.  More importantly, you can make changes (once you know how much you need to reduce your expenditure).


Our budget planner can help.  We’ve made it as easy as possible to work through. We even calculate the tax on your total income automatically for you!

Before you complete the budget planner, you may find these three tips useful:

      • Think about changes that will increase or reduce your expenditure in retirement.  For example, you may no longer have a mortgage to pay off. 
      • Consider the kind of life you want to live in retirement and identify any new expenses that may arise from your new lifestyle.
      • Categorise your expenditure into three parts: Essential expenses, Important expenses and Discretionary expenses. Then, if you need to make cuts, you know where to look first. 


And remember, not all your expenses occur annually. For example, buying a new computer. Try to identify this type of expenditure as well.


Here are some suggestions of how expenditure may move in retirement, but this is a very personal exercise, so try and construct your own list. 


Increased Unchanged Reduced
Private medical insurance Food Expensive holidays
Eating out Clothing Mortgage
Fees (clubs) Car Service Entertaining
DIY Council Tax NI Contributions
Electricity/Gas House Insurance Commuting to work




Tempted to take 100% cash?

Try our tax calculator first


Think you know about retirement?

Take our quiz and find out

Budget planner

Use our budget planner to check your finances